American Pad & Paper Announces Definitive Agreement to Sell Its Creative Card Division to Taylor Corporation.Business Editors DALLAS--(BUSINESS WIRE)--April 19, 2000 American Pad & Paper Company (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMPP AMPP Apache, MySQL, PHP and Perl AMPP Actual Medicinal Product Pack (UK) AMPP Advanced Materials and Processing Program ) (AP&P) announced today that it has signed a definitive agreement with Taylor Corporation for the purchase of AP&P's Creative Card Division located in Chicago. The sale is subject to final court approval and a motion has been filed with the Delaware Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. to review the proposed sale. The sale approval hearing is scheduled for April 28, 2000, with closing anticipated to occur within 10 days following court approval. Terms of the pending transaction were not disclosed. "The sale of Creative Card would be our first significant asset sale this year and the proceeds will be used to reduce our debt," said James W. Swent III, Chief Executive Officer. "The previously announced sale process for the Williamhouse division continues to move forward, and is anticipated to be completed around mid-year 2000. AP&P is actively marketing its other major business units including AMPAD and Forms to maximize the value of the Company for all stakeholders." "Creative Card and its Century Greetings brand are well-known in their respective distribution channels and their products are highly regarded by consumers," said John Schmitt John Schmitt (born May 6, 1962) is an American economist, who serves as a senior economist with the Center for Economic and Policy Research in Washington, DC. He has written extensively on economic inequality, unemployment, the new economy, the welfare state, and other topics for , President of the Taylor Corporation Imprinting imprinting, acquisition of behavior in many animal species, in which, at a critical period early in life, the animals form strong and lasting attachments. Imprinting is important for normal social development. Group. "We look forward to adding Creative Card as a Taylor Corporation Company and believe this acquisition will provide opportunities for additional growth both for Creative Card and our related companies." "Creative Card will continue to be based in Chicago and will continue to service its existing customer base," added Schmitt. "Customers can be confident that their needs will be met for the 2000 season and in the future." Creative Card is a nationally recognized market leader in providing premium quality holiday greeting cards See e-card. , all-occasion cards, social and business announcements, and pre-printed papers for desktop publishing desktop publishing, system for producing printed materials that consists of a personal computer or computer workstation, a high-resolution printer (usually a laser printer), and a computer program that allows the user to select from a variety of type fonts and sizes, . Taylor Corporation is a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. based in Mankato, Minn., and, together with its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. , facilitates the operation of autonomous marketing and printing companies throughout North America, Europe and Australia. American Pad & Paper Co., which invented the legal pad in 1888, is a leading manufacturer and marketer of paper-based office products in North America. Product offerings include envelopes, writing pads, file folders, machine papers, greeting cards and other office products. The key operating divisions of the Company are Williamhouse, AMPAD, and Creative Card. Company revenues in 1999 were $573 million, additional information is available on the Company's Website at http://www.americanpad.com. This release contains forward-looking statements relating to future results for American Pad & Paper. Actual results may differ significantly from these statements due to risk factors including, but not limited to the following: changing business and economic conditions; changes in customer order patterns, including loss of key customers, order cancellations or reduced sales; price and product competition; manufacturing risks; raw material availability and price changes; excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; the loss of key personnel and new product development, including acceptance of new products. Additional information, which could affect American Pad & Paper's financial results are included in AP&P's filings with the Securities and Exchange Commission. |
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